The U.K. Green Investment Bank invested 11 million pounds ($18 million) in a minority stake in a facility in Wales that uses waste wood to produce power.
Western Bio-Energy Ltd. will use the money from a GIB fund to refurbish and improve efficiency at its 14.7-megawatt power station in Port Talbot, the bank said today in an e-mailed statement without giving the stake. The plant has been working since 2008 and produces enough power for more than 28,000 homes.
The fund is managed by Greensphere Capital LLP.
Signia Wealth Management and Stobart Plc are co-investors and the latter will provide feedstock for the life of the plant, according to the statement. The U.K. Department of Energy and Climate Change estimates bioenergy plants may meet 8 percent to 11 percent of the nation’s primary energy demand by 2020.
Bioenergy and waste is one of GIB’s investment priorities, with the bank awarding a mandate to Greensphere to help invest in small-scale waste-to-energy facilities. This is the fund’s second investment since it started up in July 2012.